According to Canada Life, about one-third of over-55s with private pension plans plan to free up equity in their primary residence to help fund their retirement.
The financial services giant says its survey shows 30% of this near-retirement group plan to use their homes to provide cash once they stop working.
He adds that over-55s with higher value retirement pots are more likely than those with lower value pots to release their home equity.
The company says 42% of people with pots over £200,000 are more likely to consider release equity than those with pots valued at less than £200,000, where 27% are considering the option.
It also found that 35% of over-55s with higher incomes of £50,000 or more are more likely to consider a capital release, compared with 22% of those earning less than £20,000 and 33 % of those earning between £20,000 and £50,000.
Alice Watson, Chief Insurance Marketing Officer of Canada Life: “Retirement journeys are becoming increasingly complex. Fewer people are retiring with generous end-of-career pensions, while more people are saving later in life or renting longer.
“These demographic shifts mean more people are likely to look to their property to help support their retirement aspirations.
“Modern capital release products provide the flexibility and affordability that families and homeowners are looking for to comfortably enjoy their hard-earned retirement.
“However, releasing equity is a lifelong financial decision, so it is essential that people seek quality financial advice and discuss their decision with loved ones before agreeing to any product.”
Canada Life commissioned data group Opinium to contact 506 UK adults, aged 55 or over, on a defined contribution pension, who were not yet receiving income, between October 15 and October 26, 2021.